Bitcoin’s price is a rollercoaster, and a big drop might be on the horizon. One analyst predicts a possible plunge to $89,000 if certain key levels aren’t held.
The Potential Crash
A crypto analyst, using a one-hour Bitcoin price chart, highlighted potential trouble. The chart shows:
- Resistance Zones: Bitcoin faces significant resistance around $95,904 and between $97,000 and $98,000. Breaking through these is crucial for a move towards $100,000.
- Support Zones: If Bitcoin fails to break through resistance, it could fall. Key support levels sit between $95,600 and $92,000. A break below these could trigger a much larger drop.
- The $89,000 Prediction: If Bitcoin breaks the lower line of an ascending channel on the chart and falls below the support levels, the analyst forecasts a drop to as low as $89,000. This would represent an 8-10% crash.
Factors Pushing Bitcoin Up
Despite the bearish prediction, there are positive factors pushing Bitcoin’s price:
- Legal Recognition in China: A Chinese court ruling affirming the legality of Bitcoin and crypto ownership has boosted investor confidence.
- Trump’s Crypto Advisor: The news that Donald Trump might appoint a White House crypto advisor has also given the market a lift.
- Technical Indicators: The analyst points to five new impulsive waves (from Elliott Wave Theory) and a “Bump and Run Top Pattern” as bullish signals. Breaking above $98,700 could send Bitcoin soaring to $100,000.
In short, Bitcoin’s future is uncertain. While positive news and technical indicators suggest a potential rise to $100,000, failure to break key resistance levels could lead to a significant price correction, potentially as low as $89,000.
